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Connected Vehicles: IoT – Accelerating the Future of the Automotive Industry

  • 14-15 min read
  • January 03, 2022
  • 👍 Rating — 5 (2 votes)

In this article, we are going to tackle the issues discussing the future of IoV (Internet of Vehicles), real benefits for business, examples and key points to consider in the process of IoV app development and implementation.

According to estimates, the total number of connected devices is to reach 41 billion by 2027IoT technology has enabled the automotive industry to make a real breakthrough. The overall connectivity has completely changed the vehicle industry, made the rides safer and the driving experience more pleasant. For car manufacturers, it meant the reduction of costs since it allowed them to introduce game-changing software updates that can seamlessly be downloaded onto vehicle software. It enhances the manufacturing process and makes products more user-oriented. Nowadays, the internet of vehicles helps manufacturers supply the market with the next-generation vehicles and revolutionize the way people interact with vehicles. Is that the limit of IoT potential?

IoT in the automotive industry – general overview

Sooner or later every automotive company will reinvent itself as a data-driven one. IoT in the automotive industry is a term comprising the integration of sensors, clouds, and apps into vehicles to make them ultra-connected and use a unified ecosystem to enable auto connectivity, predictive maintenance, fleet management, etc. Manufacturers can open up new possibilities for vehicle users by implementing various new features and experiences with new software updates. 

IoT software in the automotive industry has revamped car inspection and maintenance, enabled new entertainment experiences for drivers and even in part facilitated assisted/autonomous driving. Moreover, modern automotive telematics enables more efficient transmission of data more efficiently and easier updating. It reduces the costs for the manufacturer and decreases the inconvenience for the driver since vehicles are becoming more and more complex. 

automotive industry

IoV development has helped in the emergence of IoT-powered fleet management systems. Vehicles are embedded with multiple sensors enabling weight measurement, location tracking, route management, etc. thus helping to overcome some major fleet management challenges.

IoT for car manufacturers and business owners who want to rule the future and keep up with the latest trends is the best technology to consider. It for sure stands for growth, expansion of potential, optimization of the internal process, and making the business more data-driven and stable.

Why should you consider investing in IoV?

The automotive industry has to seize new digital opportunities and reinvent itself organization by organization; the trailblazing nature of EV technology, IoV development, AI, autonomous driving – all go hand-in-hand. Technology will enable manufacturers to offer new kinds of experiences, improve the level of vehicle maintenance and upgrading. Otherwise, if they continue down the same old road, they risk jeopardizing their reputation, growing out of favor on the market, or even becoming obsolete.

Watch the video below, where the leading car manufacturers are sharing their opinions concerning the importance of vehicles connectivity.


According to this IBM automotive report, 57% of the supply chain industry will feel the positive impact through IoT in automotive and AI implementation. The opportunity to extract valuable data insights concerning movement, condition of the goods and materials, and predictive maintenance will change the way they react to changes.

Here are the key reasons why it is worth implementing IoT in the automotive industry:

  • Enhancement of the manufacturing process and risk reduction;
  • Ability to access updates and maintenance details with the convenience of your smartphone;
  • Use data insights and IoB(Internet of Behavior) to combine information of vehicle usage with personal needs to optimize and customize the experiences and improve customer loyalty;
  • Identify what is significant for the business and craft the right value proposition with data received and processed;
  • Guarantee data security and privacy increasing the consumer’s confidence;
  • Implement improvements based on consumer needs and innovate faster and speed up the manufacturing;
  • Identify the critical points at early stages and instantly act to drive business in the right direction;
  • Keep up with the latest trends on the market.

Implementation of the internet of vehicles has revamped the automotive industry, making vehicles smarter, safer, and ultimately more efficient. Investment into IoT for automotive apps will give you crucial advantages, such as for example:

Easy monetization of the App
Which is due to the high demand and scarcity of such apps on the internet. According to Statista, the worldwide spending on IoT is forecasted to reach $1.1 Trln by 2023.
Third-party integrations and partnerships
By investing in IoT-connected vehicles you can improve your ROI by selling access to your API to other businesses.
Benefits from the generated data
Connected vehicles generate huge volumes of data. Access to these insights will help better tailor your product(s) to consumer needs. And thus, you will increase the success of your product by offering exactly what the customers want.
Unique ability to enter profitable niche
Manufacturers have to supply users who want to see and experience more automotive innovations. Thus, it is the best possible moment to reinvent the way you offer customers features, putting you in a unique spot to succeed vis-a-vis the competition!

Extract the maximum value from connectivity!

Get the advanced support in the digitalization of your automotive business with IoT!

Real-life examples of IoT implementation in the automotive industry

Companies that are willing and ready to innovate and digitize themselves become the top players on the market. They are flexible and innovative enough to adopt the latest trends helping to optimize manufacturing, vehicle management and improve customer service. Here are some real-life examples of how global market leaders have successfully adopted IoT-connected vehicles technology.

volvo iot app

Volvo car manufacturers with the support of the internet of vehicles technology have created a unique Volvo on Call service. It allows putting owners in touch with their vehicles instantly. A driver can access check and control the vehicle over the internet. VOC is an integrated emergency and roadside assistance service. The connectivity also enables Volvo to be connected to their customers, share updates and offer new features.

Hitachi Construction Machinery and iot

Hitachi Construction Machinery – the third-largest manufacturer in the world – has implemented the unique web-based, IoT-powered system. It enables better fleet management and simplifies the administration. Their innovative web-based system enables them to keep close track of fleet managing it through automatic monitoring, which helps immediately generate valuable data and process it. It also enables the end customers to extract maximum value from the machines. Thanks to embedded modules that are linked to sensors over the Internet, you can enhance the customer experience, manage manufacturing and detect and prevent any inefficiencies.

caterpillar and iot

Caterpillar has established itself as an innovator being at the forefront of the tech revolution not only among heavy machinery manufacturers but as one of the top innovators in the automotive industry as a whole. They have automated their manufacturing process and increased efficiency. Moreover, they have started gathering valuable data to provide better customer service, fault management, and detection. They have also been collecting data that has been used in ongoing product development. The new generation of Caterpillar equipment will be able to fine-tune machine design based on real-time data.


Build an innovative product with us!

Implement IoT-based technology to boost your performance!

Benefits of IoT for vehicles connectivity

There are multiple ways how IoV can improve the business operations for automotive industry players improving the value proposition as well as minimizing the risks. Let us tackle the main benefits of IoT for the automobile industry:

Improved customer-oriented manufacturing
The technology enables unique car construction practices, implementation of the best features and capabilities that will ensure better customer satisfaction and higher sales. It also allows offering individual services, keeping drivers informed about errors and needs for maintenance, introducing instant updates. Moreover, IoT in automotive manufacturing allows you to keep track of parts’ inventory levels and reorder to keep production flowing smoothly.
Smart infrastructure
Improved road systems, reduction of traffic, reduced conjecture, coordinating aid etc.
Predictive maintenance
It enables tracking the vehicle condition through vehicle data monitoring. Based on the collected insights one can track the changes and determine when maintenance is needed.
Connected vehicles
IoT technology allows connected vehicles to share information about the location, route, and speed with the help of Dedicated Short-Range Communication (DSRC). It prevents accidents and possible collisions.
Driver’s safety
Implementation of IoT-connected sensors increases the safety of drivers. The technology enables monitoring of the driving habits and overall vehicle conditions, reducing the possibility of accidents. It also allows preventing drowsiness.
Unique driving experience
A smartphone connected to a vehicle offers unique functionality/control as well as provides a pleasant and entertaining experience. For example, the Tesla app allows you to track the location of your Tesla and control it from a distance. It also enables embedding the streaming apps to listen to your favorite podcasts, watch the best shows and movies, etc.
Environmental benefits
IoT in vehicles allows for more wise energy and petrol consumption, thus reducing emissions and optimizing/preserving invaluable energy resources. Moreover, private transport usage will be more comfortable and faster, reducing the number of cars on the road.

Benefit from innovation!

Adopt IoT technology for apps and advance customer service and improve the driving experience for your customer base that will be primed to grow!

Challenges in IoT implementation

automotive security

Since you have already taken the decision to integrate IoT into your automotive company, inevitably some key challenges will arise and you have to know how to be prepared. About 60% of IoT projects fail. That is a big contributing reason to why some companies are still hesitant to implement it. Here are the key challenges to be aware of and take into account to make the IoT project successful.

  • Security. Based on GBKSOFT’s experience, one of the biggest challenges in IoV implementation is data security. Vehicles generate and share huge amounts of data. Moreover, the connected networks syncs with various devices, technologies, and systems, which makes it a top spot for attacks. How to overcome this challenge: data encryption and regular backups. Moreover, one should have a risk-centered strategy in place and establish transparency over asset management.
  • Long deployment time. Time is money, and the longer it takes to upload updates, the more money the manufacturer loses. How to overcome: choosing a tech partner who offers fast time-to-market. Instant deployment of updates allows them to outperform the competitors and attract more customers thanks to instant updating possibilities.
  • Connection stability and network bottlenecks. The solution? Edge computing. Moreover, manufacturers have to make sure all nodes are able to transmit and receive information no matter the conditions and location of the vehicle.
  • Huge amounts of data for processing. Connected vehicles generate huge amounts of data. Providers face significant challenges in managing constant data flows. The way to overcome this challenge is to increase storage capacity scalability. 

Development of IoT automotive app

Successful execution of the customer’s idea depends mainly on the software development team. These are the supporting professionals that guide the customer through the world of tech possibilities and help to successfully put the business improvement idea into reality. However, there are some key sticking points that one needs to really consider and hone into when deciding to develop an IoT automotive app.

  • Clearly set the goals and define objectives. When building custom IoV apps, defining the business needs and future specifications is a core stage that serves as a building block for the whole development process. The GBKSOFT team will help you settle the key objectives and business needs that will add business value and allow you to increase your ROI.
  • Consider the specifics of the future app design. The app should have a plain and user-friendly interface, voice and feature commands as well as minimal amount of distractions for the user. The GBKSOFT designer with the relevant experience will guide you through all the key points to be taken into consideration.
  • The suitable tech stack. For successful vehicle app implementation, one should take into account the nitty-gritty detail when choosing the tech stack. The future product should be able to: integrate/connect with a car computer, configure communication with iOS and Android devices through different protocols. The tech stack depends on the target audience of the app. Here all the responsibility lies on the development team that will conduct the research and select the best tech stack to use for the development. The programming language is also important as well as third-party integrations.
  • Development and testing. The app should be tested for all possible bugs. Agile methodologies utilized by GBKSOFT allow testing the product ever since the beginning stages of product development. It also allows to speed up the development process and minimize all the possible risks.

Develop your app with GBKSOFT

Be sure that all the key nuances are taken into account with the end-user in mind!

Develop a custom automotive app with GBKSOFT

The GBKSOFT team provides all types of services you need for successful app development, deployment, and management. We provide solutions from concept and design to monetization and operation over time. We provide scalable, stable and secure solutions that meet your needs in terms of coverage, quality and price.

What we offer as your tech partner:

  • Discovery phase defining your business objective and future apps specifications to increase ROI in the nearest future;
  • Define and test specific minimum viable products (MVPs). Conduct rapid proof of concept using agile methodologies;
  • We guarantee transparency of all processes and the ability to attend team meetings  and control the development process throughout all stages of development;
  • Fast time to market to surpass the competitors and win the favor of users;
  • Use AI and ML technologies to curate and enrich data that “thinks” and “acts” to meet specific business needs;
  • The average modern car now has about 100 million lines of software code. This requires advanced coding techniques and management. Our team conducts regular code reviews;
  • We guarantee data security and scalability to be able to accommodate the processing and storing of large amounts of data;
  • We offer real-time personalization and recommendations of streamed video or music for a better customer experience of your app;
  • Utilize the power of ML/AI and create apps with predictive maintenance features.

Our success stories

MuTag – a mobile app designed to manage the MuTag device, which is attached to any item that can be missing or requires identification of its location. You may attach the MuTag device to your passport and track the item.  Main featurescrowd tracking feature, offline working mode, restoring the background when the app collapsed, unique notifications.

digital transformation case

Elite vehicles – a project aimed at automatizing manual work connected to defining all special parts of the vehicle and manually creating the list of such parts based on the order from a customer. There was the need to collect all these parts from storage using part numbers. The software allows to gather the order details from the end customer, from the list of parts associated with the order instantly upon its creation, then send the order with the needed parts to the car supplier, where each part has a number associated with it.

For more projects follow the portfolio link!

Summing up

In the automotive industry, IoT is a game-changer that enables unrivalled benefits and unleashes unparalleled efficiencies, taking your business to a whole new level. It brings us one step closer to the future of smart, autonomous vehicles. Not only that, the introductions of groundbreaking technologies continue to make IoT even more compelling; such as for example 5G internet technology, which means faster data transmissions and response times, as well as enhanced vehicular communication.

The need to maximize productivity and save time in this fast-paced era will only increase the usage of IoT devices over time. As for the automotive industry, Internet of Things applications open up entirely new opportunities. It is already being used in a number of areas within the automotive industry and the possibilities of its application will only continue growing.

IoV development has enabled the automotive industry to make a real breakthrough. The overall connectivity has completely changed the vehicle industry, made the rides safer and the driving experience more pleasant. For car manufacturers, it meant the reduction of costs since it allowed them to introduce game-changing software updates that can seamlessly be downloaded onto vehicle software. It enhances the manufacturing process and makes products more user-oriented
IoV has helped in the emergence of IoT-powered fleet management systems. Vehicles are embedded with multiple sensors enabling weight measurement, location tracking, route management, etc. thus helping to overcome some of the major fleet management challenges.
The GBKSOFT team provides all types of services you need for successful app development, deployment and management. We provide solutions from concept and design to monetization and operation over time. We provide scalable, stable and secure solutions that meet your needs in terms of coverage, quality and price.


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I am a content creator with 7+ years of writing experience. My expertise lies in Business, Education, Science, Software, and Industry. Technology-focused and software-reliant. Focused on research developments, technological breakthroughs, and the latest scientific innovations. Lover of context and nuance. I believe that the devil is in the details, and if you can combine and control all the details in a text, it will become a powerful marketing weapon.
Alexandra Rostovtseva


Being a proficient leader with over 10 years of experience in Project and Product Management, Business Development and Sales, I have strong skills in Negotiations, Crisis, Client and Risk management. Being an outstanding communicator I’m also a good mentor and leader in the tech industry. Experience and expertise are the key foundations in my ability to provide deep insights into the industry and as result I’ve also been published or was a contributor to several tech and business articles.
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